Digital currency rebounds above 11 000 after peaking at nearly 20 000 in mid-December
New York: The volatility of the digital currency markets was on display again Wednesday, as bitcoin briefly fell below $10,000 (Dh36,700) before rebounding back above $11,000 in the US afternoon.
With the drop below $10,000, bitcoin had lost about half its value since hitting a high above $19,000 in mid-December. Other digital currencies bounced around as well.
Bitcoin has slumped 20 per cent this week as traders worry that regulators in South Korea will crack down on trading of digital currencies. The price of bitcoin fell as much as 20 per cent Wednesday, but later recovered and was nearly flat at $11,392 around 5:10 p.m. Eastern Time, according to Coindesk.
Bitcoin hasn’t caught on as a currency for buying things, as intended. But it has drawn huge interest from traders, and its price has soared over the past year, and has also had several sharp drops.
The price of one bitcoin went from $1,000 at the beginning of last year to nearly $20,000 in mid-December. The latest plunge brings the price back to where it was in early December.
Many financial pros believe bitcoin is in a speculative bubble that could crash any time.